Feeds

Sanyo results hint at financial recovery

Battered but unbowed by scandal

Boost IT visibility and business value

Scandal-hit electronics firm Sanyo showed signs it may be on the road to recovery despite posting net losses of ¥45bn (€275m) in its annual results.

The results, for the year ending 31 March 2007, showed the Osaka-based firm had sales of ¥2,215bn (€13.5bn), down 7.6 per cent from the previous year. Sanyo saw its operating profit rise to ¥49.5bn (€302m) from an operating loss of ¥17.2bn (€105m) a year earlier.

There was more positive news for investors as the firm forecast a return to profitability in the current financial year. Sales of ¥2,230bn (€13.6bn) are predicted for the year ending 31 March 2008, along with a net profit of ¥20bn (€122m). Operating profit, though, is expected to drop ¥45bn (€275m).

News of the results saw shares in Sanyo jump 3.2 per cent to ¥193 (€1.18). The figures were released just before the market closed.

The projected return to profitability is a welcome relief for investors in Sanyo which admitted recently to falsifying its results in 2003, having reported a profit when there was a possibility the Japanese firm had recorded a loss.

The scandal resulted in the appointment of a new president. Last month Seiichiro Sano became the first person from outside the founding Iue family to lead the firm as president or chairman of Sanyo since it was established in 1947. He replaced Toshimasa Iue, who stepped down in March, apologising for having failed to achieve reforms and change.

The accounting scandal surfaced as the electronics maker was undergoing an upheaval, reducing jobs and moving away from unprofitable interests under a revival plan. Sanyo sold its entire 17 per cent stake in Sanyo Electric Credit this month to General Electric for ¥21.6bn (€132m). The company is also selling its chip-making unit, Sanyo Semiconductor.

Sanyo received a capital boost last year from a group of investors led by Goldman Sachs, which became the company's top shareholders and took over the board, putting new management in place. On Monday one of these new appointees, Kentaro Yamagishi, was promoted to executive director and executive vice president, having previously served as deputy general manager with the firm.

Copyright © 2007, ENN

Build a business case: developing custom apps

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.